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Imputed Income
Imputed income is the accession to wealth that can be attributed, or imputed, to a person when they avoid paying for services by providing the services to themselves, or when the person avoids paying rent for durable goods by owning the durable goods, as in the case of imputed rent. Taxation of imputed income Many countries, such as the United States, tax imputed income only in certain limited situations. Imputed income is sometimes difficult to measure, and tax policies regarding imputed income can have political consequences. For taxpayers, not taxing imputed income creates a tax incentive in favor of owning over renting, and in favor of self-service over hiring. For the economy, not taxing imputed income directs economic activity away from activities associated with extreme and severe division of labor. Example: Durable property Home ownership is an example of an instance involving imputed income from durable property. If someone lives in their own property, they forgo the ren ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Haig–Simons Income
Haig–Simons income or Schanz–Haig–Simons income is an income measure used by public finance economists to analyze economic well-being which defines income as consumption plus change in net worth. It is represented by the mathematical formula: :I = ''C'' + Δ''NW'' where ''C'' = consumption and Δ''NW'' = change in net worth. Consumption refers to the money spent on goods and services of any kind. From a perfect theory view, consumption does not include capital expenditures, and the full spending would be amortized. History The measure of the income tax base equal to the sum of consumption and change in net worth was first advocated by German legal scholar Georg von Schanz. His concept was further developed by the American economists Robert M. Haig and Henry C. Simons in the 1920s and 1930s. Haig defined personal income as "the money value of the net accretion to one's economic power between two points of time," a formulation that was intended to include the taxpayer' ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Theory Of Imputation
The theory of imputation is based on the so-called theory of factors of production proposed by the French economist Jean-Baptiste Say and elaborated by the American economist John Bates Clark in his work ''The Distribution of Wealth'' (1899; Russian translation, 1934). The proponents of the theory of imputation see its main task as elucidating which parts of wealth may be attributed (imputed) to labor and capital respectively. Principles In economics, the theory of imputation, first expounded by Carl Menger, maintains that factor prices are determined by output prices (i.e. the value of factors of production is the individual contribution of each in the final product, but its value is the value of the last contributed to the final product (the marginal utility before reaching the point Pareto optimal). Thus, Friedrich von Wieser identified a flaw in the theory of imputation as expounded by his teacher, Carl Menger: overvaluation may occur if one is confronted with economies where p ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Imputed Rent
Imputed rent is the rental price an individual would pay for an asset they own. The concept applies to any capital good, but it is most commonly used in housing markets to measure the rent homeowners would pay for a housing unit equivalent to the one they own. Imputing housing rent is necessary to measure economic activity in national accounts. Because asset owners do not pay rent, owners' imputed rent must be measured indirectly. Imputed housing rent is the economic theory of imputation applied to real estate: that the value is more a matter of what the buyer is willing to pay than the cost the seller incurs to create it. In this case, market rents are used to estimate the value to the property owner. Thus, imputed rent offers a way to compare homeowners' and tenants' economic decisions. More formally, in owner-occupancy, the landlord–tenant relationship is short-circuited. Consider a model: two people, A and B, each of whom owns property. If A lives in B's property, and B li ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Division Of Labor
The division of labour is the separation of the tasks in any economic system or organisation so that participants may specialise (specialisation). Individuals, organizations, and nations are endowed with, or acquire specialised capabilities, and either form combinations or trade to take advantage of the capabilities of others in addition to their own. Specialised capabilities may include equipment or natural resources as well as skills, and training and combinations of such assets acting together are often important. For example, an individual may specialise by acquiring tools and the skills to use them effectively just as an organization may specialise by acquiring specialised equipment and hiring or training skilled operators. The division of labour is the motive for trade and the source of economic interdependence. Historically, an increasing division of labour is associated with the growth of total output and trade, the rise of capitalism, and the increasing complexity of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Income Tax In The United States
Income taxes in the United States are imposed by the federal government, and most states. The income taxes are determined by applying a tax rate, which may increase as income increases, to taxable income, which is the total income less allowable deductions. Income is broadly defined. Individuals and corporations are directly taxable, and estates and trusts may be taxable on undistributed income. Partnerships are not taxed (with some exceptions in the case of Federal income taxation), but their partners are taxed on their shares of partnership income. Residents and citizens are taxed on worldwide income, while nonresidents are taxed only on income within the jurisdiction. Several types of credits reduce tax, and some types of credits may exceed tax before credits. An alternative tax applies at the federal and some state levels. In the United States, the term "payroll tax" usually refers to FICA taxes that are paid to fund Social Security and Medicare, while "income tax" re ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Dictum
In general usage, a dictum ( in Latin; plural dicta) is an authoritative or dogmatic statement. In some contexts, such as legal writing and church cantata librettos, ''dictum'' can have a specific meaning. Legal writing In United States legal terminology, a ''dictum'' is a statement of opinion considered authoritative (although not binding), given the recognized authoritativeness of the person who pronounced it."dictum", Black's Law Dictionary (8th ed. 2004); C.J.S. Courts §§ 142-143. There are multiple subtypes of ''dicta'', although due to their overlapping nature, legal practitioners in the U.S. colloquially use ''dictum'' to refer to any statement by a court the scope of which extends beyond the issue before the court. ''Dicta'' in this sense are not binding under the principle of '' stare decisis'', but tend to have a strong persuasive effect, by virtue of having been stated in an authoritative decision, or by an authoritative judge, or both. These subtypes include: * ''di ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Supreme Court Of The United States
The Supreme Court of the United States (SCOTUS) is the highest court in the federal judiciary of the United States. It has ultimate appellate jurisdiction over all U.S. federal court cases, and over state court cases that involve a point of federal law. It also has original jurisdiction over a narrow range of cases, specifically "all Cases affecting Ambassadors, other public Ministers and Consuls, and those in which a State shall be Party." The court holds the power of judicial review, the ability to invalidate a statute for violating a provision of the Constitution. It is also able to strike down presidential directives for violating either the Constitution or statutory law. However, it may act only within the context of a case in an area of law over which it has jurisdiction. The court may decide cases having political overtones, but has ruled that it does not have power to decide non-justiciable political questions. Established by Article Three of the United States ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Sixteenth Amendment To The United States Constitution
The Sixteenth Amendment (Amendment XVI) to the United States Constitution allows Congress to levy an income tax without apportioning it among the states on the basis of population. It was passed by Congress in 1909 in response to the 1895 Supreme Court case of '' Pollock v. Farmers' Loan & Trust Co.'' The Sixteenth Amendment was ratified by the requisite number of states on February 3, 1913, and effectively overruled the Supreme Court's ruling in ''Pollock''. Prior to the early 20th century, most federal revenue came from tariffs rather than taxes, although Congress had often imposed excise taxes on various goods. The Revenue Act of 1861 had introduced the first federal income tax, but that tax was repealed in 1872. During the late nineteenth century, various groups, including the Populist Party, favored the establishment of a progressive income tax at the federal level. These groups believed that tariffs unfairly taxed the poor, and they favored using the income tax to shif ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Internal Revenue Code
The Internal Revenue Code (IRC), formally the Internal Revenue Code of 1986, is the domestic portion of federal statutory tax law in the United States, published in various volumes of the United States Statutes at Large, and separately as Title 26 of the United States Code (USC). It is organized topically, into subtitles and sections, covering income tax in the United States, payroll taxes, estate taxes, gift taxes, and excise taxes; as well as procedure and administration. The Code's implementing federal agency is the Internal Revenue Service. Origins of tax codes in the United States Prior to 1874, U.S. statutes (whether in tax law or other subjects) were not codified. That is, the acts of Congress were not separately organized and published in separate volumes based on the subject matter (such as taxation, bankruptcy, etc.). Codifications of statutes, including tax statutes, undertaken in 1873 resulted in the Revised Statutes of the United States, approved June 22, 1874, eff ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Harvard Law School
Harvard Law School (Harvard Law or HLS) is the law school of Harvard University, a private research university in Cambridge, Massachusetts. Founded in 1817, it is the oldest continuously operating law school in the United States. Each class in the three-year JD program has approximately 560 students, among the largest of the top 150 ranked law schools in the United States. The first-year class is broken into seven sections of approximately 80 students, who take most first-year classes together. Aside from the JD program, Harvard also awards both LLM and SJD degrees. Harvard's uniquely large class size and prestige have led the law school to graduate a great many distinguished alumni in the judiciary, government, and the business world. According to Harvard Law's 2020 ABA-required disclosures, 99% of 2019 graduates passed the bar exam. The school's graduates accounted for more than one-quarter of all Supreme Court clerks between 2000 and 2010, more than any other law schoo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Implied Level Of Government Service
The implied level of government service is the value of government benefits and services provided a person, partnership, corporation, or other legal entity over a given period of time, including the proportional value of general governmental expenses and social welfare costs. The implied level of government service may be directly calculated in some cases, and approximated in others. For instance, a state park that is dependent on visitor fees for operation could divide the yearly operational cost by the number of expected user days, and charge a daily tax or fee based on that calculation. This fee for service is directly calculated. A city could have multiple services and social welfare expenditures—police, fire, library, refuse removal, and emergency food and housing support—and the exact service to individual taxpayers in those areas might be difficult or impossible to track. The city, however, can set a standard such as number of residential occupants, employee number, or ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rational Economic Exchange
Rational economic exchange also called goods exchange economy is an economic transaction where goods or services are transferred from the provider for a return of relative value (compensation) from the receiver in a manner that advances the economic interests of both parties. Rational economic exchange is implied in voluntary economic transactions between private parties (i.e., regular commerce) where it is assumed that an economic transaction would not occur unless both parties believed they would be better off after the trade. Rational economic exchange can be implied in governmental taxation and spending where the agents of the citizen—government legislators and administrators—implement fiscal policy where tax assessment to the citizen is related, substantially, to an implied level of government service. See also *Implied level of government service *Taxation in the United States *Islamic economic jurisprudence Islam (; ar, ۘالِإسلَام, , ) is an Abrah ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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